New draft regulations governing when a company must make good on the underfunding of a pension scheme have recently been released by the Department for Work and Pensions (DWP).
The current regulations have received heavy criticism and revisions have been eagerly anticipated. However, reactions to the proposed revisions are mixed. Many are disappointed that a debt will continue to arise frequently and that it will be higher than the proportionate amount needed to fund the scheme on an ongoing basis. Trustees may find that as employer options increase, so does the complexity of the trustee response.
